Stock Market: A Plain-English Introduction Part 3: Temperament and Strategy
Parts 1 (read here) and 2 (read here) painted a somewhat daunting picture: stocks are complex, markets are emotional, and professionals often have significant advantages over ordinary investors. Nonetheless, there is an encouraging answer for us, one that requires neither financial expertise nor constant attention. In this final post, we’ll work through a blueprint for […]
Stock Market: A Plain-English Introduction Part 2: People, Psychology, and Price
In Part 1 (read here), we covered what stocks are, how companies and shareholders benefit from them, and why earnings drive stock prices. In this post, we’ll shift from the business itself to the people buying and selling it, and examine how psychology drives the market from day to day. A company’s business changes little […]
Stock Market: A Plain-English Introduction Part 1
The American stock market has been surging. Many Americans who have never owned a stock are getting interested, and it’s easy to get swept up in tips from friends or social media. If you’re new to stock investing, this is a good time to step back and understand what the stock market actually is. This […]